Solv Protocol is set to introduce an innovative “onchain MicroStrategy” to integrate yield-generating Bitcoin reserves into decentralized finance (DeFi), according to a post from Solv’s co-founder Ryan Chow on Nov. 29.
Chow stated, “We are creating the first On-Chain MicroStrategy—a transparent and permissionless platform designed to transform Bitcoin from just a passive store of value into a dynamic financial engine.”
The goal, as outlined by Chow, is for Solv to manage a strategically developed Bitcoin reserve that not only safeguards wealth but also generates yield and enhances returns. However, the company did not disclose the exact methods it will use to achieve this ambitious goal.
Solv operates as a Bitcoin staking platform, offering a variety of yield strategies across multiple blockchain networks. The platform generates yield by staking BTC on Bitcoin layer-2s, such as Babylon and CoreChain, and utilizing DeFi protocols like Jupiter and Ethena.
At present, Solv manages over $3 billion in total value locked (TVL), as reported by DefiLlama.
MicroStrategy’s Bitcoin Buying Spree
MicroStrategy, a business intelligence firm, has effectively transformed into a Bitcoin hedge fund since 2020, when chairman Michael Saylor embarked on an aggressive BTC purchasing strategy.
The company has seen remarkable success, with its stock, MSTR, rising more than 450% in 2024 alone, according to Google Finance data.
In an earnings call on Aug. 1, MicroStrategy reinforced its commitment to Bitcoin by introducing a new performance metric: Bitcoin yield. This measure calculates the ratio of Bitcoin holdings to outstanding shares, providing a benchmark for corporate performance based on BTC-per-share.
MicroStrategy’s strategy focuses on leveraging its balance sheet—either through borrowing or issuing new shares—to acquire Bitcoin, aiming to increase its BTC-per-share ratio over time and deliver greater value to shareholders.
On Oct. 30, the company unveiled its ambitious “21/21 Plan,” which includes raising $21 billion in equity and $21 billion in debt to fund a multiyear Bitcoin buying spree.
Benchmark analyst Mark Palmer forecasts that by 2025, MicroStrategy could achieve a Bitcoin yield of 12.7%.
Chow commented on MicroStrategy’s strategy, noting that it has “transformed Bitcoin into more than just a reserve—it’s now a powerful driver of growth.” He added that MicroStrategy’s success has “redefined the potential for institutional Bitcoin reserves.”
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